Starting an Online Education Business in Dubai – All Things to Know
The online education industry in the UAE is experiencing significant growth. Since the onset of the pandemic, the education sector in the UAE has been greatly impacted, leading many educational institutions to embrace new trends. The traditional classroom teaching approach has now transitioned to online classrooms, utilizing video conferencing applications. This shift has allowed for greater adaptability and accessibility in delivering education to students.
Growth of Online Education
- The online education sector in the UAE had a market value of USD 4.4 billion in 2017, with projections indicating a significant growth to USD 7.1 billion by 2023. This robust expansion demonstrates the immense potential and lucrative opportunities within the industry.
- This segment offers vast business opportunities, including support for tutors and coaches, creation of educational tools, curriculum planning, and online training centers. Exploit these prospects to enhance word choice, structure, readability, and eloquence while preserving the original meaning.
- The UAE offers a plethora of advantages to investors looking to establish a fully foreign-owned online education institute. These benefits include exemption from income tax, a supportive business environment, and much more.
How to start an Online Education Business?
For those looking to establish an online education business in the UAE, seeking guidance from a highly regarded business consultant is highly recommended. This invaluable support not only saves time but also proves to be cost-effective in the long run. Entrepreneurs new to the UAE often face the challenge of navigating through the bureaucratic processes and documentation required for setting up an online education business.
Experienced Business Consultants like PRO Consultancy will guide you by providing the right Free Zone or mainland according to your business objectives, budget, and other requirements.
Steps to Set up an Online Education Business in UAE
To establish an Online Education Business in the UAE, there are specific steps that must be followed. The investor should first obtain pre-approval from the regulatory authorities before proceeding with the issuance of the Online Education Business License. This can be easily accomplished by seeking the expert assistance of a PRO Consultancy.
Let’s look at the basic steps in setting up an Online Education Business in the UAE
1. Selecting the Right Business Activities
Within the education sector, numerous subcategories exist, such as online tutoring and the preparation of learning materials. When establishing your Online Education Business in UAE, carefully select the category that aligns most fittingly with your objectives.
The investor is required to select the desired business activities from the list of activities that are permitted within the respective free zones.
2. Decide on the Company Name
Please select three names and submit them to the Free Zone authorities for approval. Once you receive the approval, choose one name from the three options for your business.
When selecting a name, exercise careful consideration as it will become your business’s identity and ultimately, your brand. Make this decision wisely, as it carries significant weight and importance for your company’s future.
3. Choose the right Business Jurisdictions
Entrepreneurs need to carefully select the most suitable business jurisdiction for their education enterprise, taking into account its specific requirements.
For a training institute, it is optimal to be situated on the mainland, in proximity to residential areas or a well-known location in the UAE. This strategic choice facilitates convenient access for students, ensuring ease of commute.
There are numerous business centers located in mainland Dubai that provide appealing pricing options for small office spaces, ideal for conducting training sessions.
To access certain Free Zones, visitors must obtain a gate pass. This requirement can be an inconvenience for daily visitors.
4. Choose the Right Company Structure
Selecting the appropriate company structure is a vital aspect for the Online Education Business in the UAE. To ensure compliance, it is crucial to choose the right structure from the Free Zones based on the number of shareholders. This decision holds significant importance in establishing a successful and legally sound business operation.
For a mainland company (Limited Liability Company), it is necessary to appoint a UAE national as a local sponsor. Pravo can help you find the perfect partner for your LLC Company in the Mainland of UAE.
Investors also have the opportunity to obtain a professional license from the Dubai Economy and establish an education company in the UAE. For the professional type company, the foreign investor is required to appoint a Local Service Agent.
The LSA does not exert control over the business but serves as a liaison between the government and the company for administrative tasks. Its role lies in facilitating effective communication and coordination, ensuring smooth operations and compliance.
5. Get the Required Clearance from the Regulatory Authority
The education sector in the UAE is overseen by the UAE Government and the Education Departments of each Emirate. In Dubai, the Knowledge and Human Development Authority (KHDA) acts as the governing body, ensuring effective regulation and supervision.
All educational institutions, professional training centers, colleges, and online educational sites in Dubai are required to comply with the regulations and obtain approval from KHDA (Knowledge and Human Development Authority).
When establishing an education company in Dubai, it is imperative for the investor to obtain the necessary approvals from the KHDA. These approvals are essential for acquiring the professional license and commencing operations smoothly and successfully.
To know more about the KHDA Approval read: Starting an education Training Center in UAE
6. Submit the Application Form and Documents Required
To obtain the professional license for your education company, you need to submit the necessary documents to either the Free Zone or the Dubai Economy. This will ensure compliance and allow you to operate legally.
Documents required to get an Education Centre License
- Passport copy of the Investor and Photograph
- Filled -in Application form (Free Zone/Dubai
Economy) - Tenancy Contract and Office Plan Approvals
- KHDA Approval
- Shareholder certificate and Memorandum of
Association
Along with the documents submit the required fee to be paid for securing the educational training license in UAE.
7. Visa Application and Bank Account Opening
After obtaining the professional license from the relevant authorities, you can proceed with the application for a UAE residence visa. Additionally, you can initiate the process of opening a corporate bank account in the UAE.
Benefits of online education Business for the Investor
Education institutes offer a significant benefit: the professional license category. This category allows for 100% foreign ownership, both in Free Zones and on the Mainland of UAE.
The involvement of additional shareholders and local partners will only arise if you opt for the LLC Company Setup.
With the migration to online education, now training centres require reduced office space and can be operated from anywhere with a valid professional license. Also, it helps in reducing the administration and other overhead costs of taking a business center or a physical office.
Passionate entrepreneurs in the education sector can find a lucrative business investment in offering flexible work hours and catering to a diverse global audience. By enhancing the website with engaging courses and effectively coordinating classes, they can create a thriving venture that resonates with learners worldwide.
Talk to our expert team to learn more about setting up an online education institute in UAE!